Trying to find a SIPP platform and fund that can be essentially hands off in retirement?

QrizB

You could build a collapsing ladder if IL gilts to make sure you always have the cash available in your SIPP to service your drawdowns. But this has few advantages over simply buying an annuity.

RogerPensionGuy

All above comments noted and thanks.

Altho I'm not sure best options to use going forward to try and produce my utopian plan with none or little time, effort and emotions, but I'm very well aware of the 268 TFLS and LTA saga. 

I consumed most of my LTA when I commuted the old deferred DB pension and still very happy with that decision that I took at that time.

So fully aware I have X% of 268 available to take at some point in time. 

The information above about a GIA with HL is also of interest to me, tks. 

Thankfully I'm in no rush doing all this stuff, I'm happy keeping lots of wealth in stock markets, but feel I would like it all set, locked way before age 68ish and then switch of any effort and especially disconnect my emotions as hopefully thd years roll by.

Cheers Roger. 

gm0

There are a lot of pension freedoms options.  And so there is not way to pre-package all of that in a setup once, never touch manner - which would suit all comers.  Ah but I want 2 years non-equities buffer for sequence. No i want 4. and so on.   I want FAD cash up front. No i want UPFLS with tfc embedded each month etc. etc.

Fund managers provide the blended equities and bonds in 5 risk tiers.  And all platforms offer that.  The options available to take income preferentially "cash first" or "biggest fund"  "smeared across" can be used to automate to a degree in terms of what happens over time.

But in general indexation of income is not offered automatically.  
And you have to call up every 12-18 months or interval of choice to tweak income.  And perhaps review investments and/or rebalance if that's required by your investment choices.

This is not onerous. It's what I do. And my income just drops in every month.  
Nothing is traded until I get to my rebalancing/reset income interval once every 18 months or so.  So I am not watching the market gyrate or altering what gets sold for income.

I do not use the risk tiered blended funds in general. I use all equities funds and all gilts or MMF and other things which allow me to sell things independently - should I choose to do so - at one of these rebalancings. Not all mushed together into units which contain both.

There would be plenty of critics of this approach who will argue the potential return is diluted by this setup over a more aggressive one.  Without income buffer etc. And that they can prove an average better outcome from backtesting.  

And yet for a retiree hit by the bad/close to worst sequence in the early years. Some buffering for time to take stock and other lifestyle actions is helpful.  Sleeping at night is part of having an effective plan.

But the quest for "no touch at all" is likely to prove fruitless. Low touch - easy.  No touch - harder.  Really talking about indexed annuities paid into joint account for the two lives covered.

Bravepants

DRS1 said:

It sounds like you want what I have with my HL GIA.  I have it set so that the income is paid out once a month.  If they can do it for a GIA could they not do it for a SIPP?  I know there would be tax to deduct and questions about whether any bit of it was a TFLS but if you confirmed you had used up all your LSA then it could be just like drawdown from a crystallised pot where everything is taxable.

Apologies, I don't mean to hijack the thread but a quickie...I spotted this and would like to know how you did this please? I have an HL Fund and Share account (which I assume is what you mean by GIA?), but I can't see an option to select a regular monthly withdrawal.

hara____

Bravepants said:

DRS1 said:

It sounds like you want what I have with my HL GIA.  I have it set so that the income is paid out once a month.  If they can do it for a GIA could they not do it for a SIPP?  I know there would be tax to deduct and questions about whether any bit of it was a TFLS but if you confirmed you had used up all your LSA then it could be just like drawdown from a crystallised pot where everything is taxable.

Apologies, I don't mean to hijack the thread but a quickie...I spotted this and would like to know how you did this please? I have an HL Fund and Share account (which I assume is what you mean by GIA?), but I can't see an option to select a regular monthly withdrawal.

Under 'Account Settings' you can choose from a few different options to determine what should be done with any income from your investments, including having it paid to your nominated bank account.

I'm not sure you can setup an instruction to regularly sell investments, so the above relies on your investments generating income at the frequency you need.

DRS1

Yes sorry if I made it sound like I had done something special.  The monthly payout of income is just how HL do it.  So your choice is really just accumulate the income in the Fund and Share account or pay it out. 

Others eg IWeb pay out when the income lands with them.

bjorn_toby_wilde

I’m investigating options for withdrawal myself right now. One of the II drawdown offerings sounds like what you’re describing.

If I’m reading it right you can move a portion of your pot into drawdown, choose one of their four investment pathways (the STMMF option looks like what you described) then set up a monthly payment. It looks like it’s all included in the monthly fee too.

Happy to be corrected as I’m still working through the possibilities.

Linton

I do not think you can get a largely hands off drawdown process solely using a SIPP.

To minimise effort  and avoid money worries I suggest you do some or all of the following:

1) Cover basic essential expenditure by guaranteed income - annuity, SP or DB pension.
2) Only withdraw money from the SIPP once a year at most as part of rebalancing
3) Don’t use SIPP withdrawals to directly finance expenditure but rather to top up significant near to cash holdings or to build up an income generating ISA. Generally it seems that you can get an ISA to automatically pay out all generated income tax free into the linked cash account.

We are now in the position that none of our expenditure comes from SIPPs. The SIPPs have been largely drained and now just hold long term Wealth Preservation funds. Our 100% equity growth funds are also held in ISAs but are only rarely accessed, perhaps every 2-3 years, to rebalance the near to cash and income portfolios.

bjorn_toby_wilde

Linton said:

I do not think you can get a largely hands off drawdown process solely using a SIPP.

To minimise effort  and avoid money worries I suggest you do some or all of the following:

1) Cover basic essential expenditure by guaranteed income - annuity, SP or DB pension.
2) Only withdraw money from the SIPP once a year at most as part of rebalancing
3) Don’t use SIPP withdrawals to directly finance expenditure but rather to top up significant near to cash holdings or to build up an income generating ISA. Generally it seems that you can get an ISA to automatically pay out all generated income tax free into the linked cash account.

We are now in the position that none of our expenditure comes from SIPPs. The SIPPs have been largely drained and now just hold long term Wealth Preservation funds. Our 100% equity growth funds are also held in ISAs but are only rarely accessed, perhaps every 2-3 years, to rebalance the near to cash and income portfolios.

So would you hold dividend funds/shares in the ISA to generate the income? Where would those dividends go? Into a linked bank account?

Pipthecat

RogerPensionGuy said:

no debts, house owned outright, plus an good DB pension. don't need any extra income to maintain my lifestyle. have a S&S and a cash ISA that will cater for any big spending 

What are you saving for?  You are in retirement, you seem to have more money than your needs and no one you need to leave it to.  I would be asking how much can you spend while you are your partner are in good health.